PROJECTS

INTRODUCTION

The operations of Gondwana Resources Limited (the Company) and its controlled entity (the Group) comprise mineral exploration in Western Australia. The Company is also engaged in a global search for new mineral exploration, development and mining opportunities.

The Company holds a number of interests in tenements prospective for lithium, gold and other minerals. These prospects are summarised in this review of operations.

MT HOLLAND LITHIUM AND GOLD PROSPECT

The Mt Holland prospect (exploration licence application E77/2143) contains several targets for Lithium, Gold and Gold-Copper mineralisation in an Archean greenstone belt that hosted a series of historic open cut gold mines that operated during the 1980s and until 2002.

In 1982, maximum copper and arsenic soil anomalies across 2 x 1km-spaced lines were discovered but not followed up. The tenement also contains an unmined gold-bearing laterite, from an historic prospect referred to as the Blue Turtle prospect.  No drill logs can be located but the drill locations are noted on plans.

Blue Turtle Gold Prospect

WAMEX report A24752: Blue Turtle Annual Report on Mt Holland E77/23 1988 – author Metals Exploration Ltd -refers to primary gold mineralisation at the Blue Turtle prospect up to 3m @ 6.6g/t from 9m below 3-6m of laterite pisoliths grading up to 1.28g/t.

Shallow drilling on 100m spaced lines either side in 1988 failed to delineate any continuity.  In this area, depletion zones combined with near vertical gold shoots in the unweathered basement often lie beneath near-surface oxide mineralisation. It appears that no deep RC drilling has ever been undertaken at this prospect.

Multiple E-W trending dykes at this location have disturbed the N-S stratigraphy. Mineralisation may be locally folded or remobilised and consequently could be trending oblique to the E-W drill lines.  Gold mineralisation at the Blue Turtle prospect could potentially be around 150m in strike and may be related to a vertical or sub-vertical plunging shoot.

Mt Holland Lithium Prospect

Gondwana’s Mount Holland Lithium Project is located immediately adjacent to the world-class Earl Grey Lithium Deposit in the Forrestania Lithium Province in Western Australia.

Refer to Figure 1.

The adjacent Earl Grey Lithium deposit, which is held by Covalent Lithium, a joint venture between Kidman Resources Limited, now wholly-owned by the Wesfarmers Limited group (Wesfarmers) and the Sociedad Quimica y Minera de Chile S.A group (SQM), contains a  large-scale, long-life and high-grade lithium deposit which, according to the Wesfarmers website, is the world’s third-largest hard rock deposit of contained lithium.

Based on published information, the eastern boundary of Gondwana’s E77/2143 is approximately 300 metres from the proposed open pit for the Earl Grey mine.

The source of the lithium-rich pegmatites is postulated to be a granite dome to the west of Kidman’s Earl Grey Deposit, with feeder structures cross cutting the northern section of Gondwana’s tenure, which covers the area between the granite dome and the Earl Grey Deposit.

Earlier exploration of E77/2143 has focused on gold and there has been no historic lithium exploration over Gondwana’s target area.

A number of companies, including Kidman, Hannans, Marindi Metals and Classic Minerals are now actively exploring the fringe zones of the granite domes over the length of the Forrestania Belt, with Gondwana’s E77/2143 encompassing two of the most prospective domes within the Belt.

Gondwana’s Mount Holland Lithium Project represents an important opportunity to discover extensions and repetitions of the Earl Grey pegmatites and provide early stage exposure to highly-sought tenure within this emerging lithium region.

The tenement is expected to be granted in the near future, enabling first-phase lithium exploration to commence in 2020. The tenement area expected to be granted is approximately 56sqkm.

The tenement is located approximately 365km due east of Perth, Western Australia with excellent existing access, power, water and rail and road infrastructure.

Figure 1: Gondwana’s Mount Holland Lithium Project – adjacent to Earl Grey

 

 

PARKER RANGE

The Company holds interests in tenements located at Parker Range, in the Southern Cross Greenstone Belt south of Minjar’s Marvel Loch Gold operations and 80km north of Western Areas’ Forrestania Nickel operations.

The Southern Cross area is a well-recognised regional mining centre, offering excellent established infrastructure and a long gold mining history.

In 2018, a number of the Parker Range tenements (including those hosting the Centenary and Buffalo and Spring Hill Mineral Resources) were sold. The Company’s remaining tenement interests at Parker Range, which host the historic Gordon Highlander Mine and the Mopoke open pit mine are summarised below.


Figure 2: Location of Tenements

Centipede South Joint Venture

Gondwana 70%; Barclay Holdings 30% free carried.
Gondwana holds a 70% interest in the Centipede Joint Venture tenements at Parker Range. The tenements are M77/561 and M77/562, located to the south and southeast of the historic Spring Hill gold mine.

Gordon Highlander mine survey

At the Gordon Highlander historic underground mine (M77/562), the southernmost hole during the 2010 RC program intersected 3m @ 1.01 g/t from 14m depth and 5m @ 1.97g/t from 23m depth in hole 10SHRC014.

The 2010 drill intersect is up-dip from a previously drilled 2008 RC exploration hole (SHRC08015) which intersected 5m @ 1.57g/t from 36m depth.

The best RC results at Gordon Highlander are:

  • SHRC08015 : 26m to 32m 6m @ 0.83 and 36m to 41m – 5m @ 1.57
  • 10SHRC014 : 14m to 17m – 3m @ 1.01 and 23m to 28m – 5m @ 1.97g/t

During the 2018-2019 reporting period, a programme was completed comprising of 150 x 1kg soil samples from M77/562 and 180 x 1kg soil samples from M77/561.

Mopoke north and south survey

The Mopoke North quartz vein has been drill previously tested and a review of the drilling effectiveness shows additional holes are required. This drilling was performed in 2010 and the two holes showed 1m gold intersects up to 0.9 g/t, but they were very shallow and do require deeper holes to test veins below oxide level. The +0.3g/t soil gold anomalism survey extends 100m to the north of the quartz vein outcrop and further drill holes are being designed to test north of the outcrop area.

Buffalo East survey

Historic drilling within Wamex report A25941 shows a small zone of enrichment in the corner of the Centipede and Mopoke tenements. This mineralized area is located in shallow laterite around the margin of the salt lake where the hyper saline water encroachment towards Buffalo. This is shown on the company’s 2010 V-TEM AEM data as high conductivity on all channels, with the underlying geology changing to more ultramafic at the location.

Secondary gold deposition is an important style of gold mineralization above or near to primary ore zones such as at the Golden Virgin pit north of Buffalo, which enriches near the surface because of the salt water interaction with the primary mineralisation. Shallow drilling would be required south of the existing cleared drill line to ascertain if this is primary or secondary mineralisation.

Infill soil sampling

A detailed 25m x 50m line spacing soil survey has been conducted to the south of the historic Gordon Highlander Mine workings (along the BIF strike near the southern tenement boundary of M77/562) to infill at 25m spacing the 2 gold-in-soil anomalies discovered during 2018 surveying.

Other reconnaissance soil samples have been taken at 25m x 50m line spacing to the east and west of the Gordon Highlander shafts.

Whole soil and laterite samples were excavated by hand using a prospecting pick and crow bar down to 30cm depth. Soil samples were delivered to the Intertek Genalysis mineral laboratory in Maddington where they were pulverised and fire assayed (at 0.005 ppm gold detection) using a 50g charge – code FA50/OE.

In the south of M77/562 a multi-phased RC drill program drill has been designed along the BIF trend which is primarily targeting a thickening of the eastern BIF.

The northern area of M77/561 has been soil surveyed to infill soil sample along the quartz vein outcrop strike southwards to the Mopoke open cut and then eastwards towards the salt lake. A number of weak gold in soil anomalies have been targeted in the Mopoke phase 1 drilling program design using 6 x RC drill collars estimated at 280m.

Proposed RC Drilling – Gordon Highlander South

Figure 3: Proposed RC drill program (Phase 1: red; Phase 2 – yellow Phase 3 – blue)

The GHS phase 1 drilling program in M77/562 has been designed as 16 RC drill collars estimated to total 1,040m, depending on BIF thickness and dip steepness.

  • Initially to focus on the central soil anomaly, 10 RC holes are planned in an easterly direction across the thickening eastern BIF to ensure all drill holes pass through all the BIF layers. The depth of one or more of the eastern holes could be extended to check that all BIF’s have been tested.
  • There are 4 RC holes planned for the southern soil anomaly target area.
  • Drilling to the south-west of the Gordon Highlander shafts is planned to extend coverage along strike.

Phase 2 drilling will target the eastern BIF ore zone.

Proposed RC Drilling – Mopoke NE Quartz Vein

At Mopoke (M77/561), a 280m x 6 hole RC drill program has been designed to test the quartz vein which was previously drilled in 2010. Two drill lines with 3 RC holes each will focus 20m along strike from the historic PDR1206 intersect.

Once PDR1206 has been located on the ground, a twin 40m hole will drilled prior to finalising locations for the next 5 collars.

EAST PILBARA

Nullagine Gold Prospect (E46/1026)

Nullagine gold project is considered prospective for mineralisation similar to Millennium Minerals’ Nullagine Gold Project, which holds a 31.76M tonne resource at 1.3g/t for a total of 1,280,400oz, (Millennium annual report 2016).

Gold has also been mined from along the Blue Spec Fault to the east of Gondwana’s project. Historical drilling on the Blue Spec Fault indicates gold mineralisation extends over a 5km strike length, with gold being hosted in or adjacent to near vertical quartz veins.

The company has completed a data review and an initial field exploration program. ASTER imagery and an interpretation report was acquired from Geoimage. Fieldwork included mapping of accessible areas and collection of 105 rock chip samples, the best Gold, Arsenic and Copper having been previously reported.


Figure 4: Tenement outline, major faults and the Blue Spec Mine location

Interpretation of the geology, the 2017 rock samples and geochemical assays, coupled with a review of the complex mineralising mechanism of the Blue Spec Fault, has resulted in definition of two previously unknown and untested areas of interest.

The project is considered prospective for gold mineralisation for the following reasons:

  • Correct sequence of geological units (as identified by Millennium Minerals) including the Mosquito Creek Formation.
  • Correct regional structural setting, which includes the Blue Spec Fault and parallel fault zones
  • Historical drilling intersected >5km strike length of gold anomalism (to the east of E46/1026)
  • Complex local structural setting faults that may provide ideal hosts for mineralisation.
  • Presence of mafic dolerites/gabbros.
  • Anomalous gold results indicate mineralising fluids have been present within the tenement.

The company has completed a data review and an initial field exploration program. ASTER imagery and an interpretation report was acquired from Geoimage. Fieldwork included mapping of accessible areas and collection of 105 rock chip samples, the best Gold, Arsenic and Copper having been previously reported.

Interpretation of the geology, the 2017 rock samples and the 2017 geochemical assays, coupled with a review of the complex mineralising mechanism of the Blue Spec Fault, has resulted in definition of two previously unknown and untested areas of interest.

The project is considered prospective for gold mineralisation for the following reasons:

  • Correct sequence of geological units (as identified by Millennium Minerals) including the Mosquito Creek Formation.
  • Correct regional structural setting, which includes the Blue Spec Fault and parallel fault zones
  • Historical drilling intersected >5km strike length of gold anomalism (to the east of E46/1026)
  • Complex local structural setting faults that may provide ideal hosts for mineralisation.
  • Presence of mafic dolerites/gabbros.
  • Anomalous gold results indicate mineralising fluids have been present within the tenement.

The work program indicates the Nullagine project has potential to host significant gold deposits in the following settings:

  • A series of disconcordant (with respect to stratigraphy) vertically stacked quartz, pyrite reefs systems and quartz stockwork
  • Discordant veins internally within the Blue Spec Fault
  • Two anomalous gold results indicating that mineralising fluids have been present within the tenement.

In October 2017, a farm-out agreement has been entered into with LMTD Nullagine Pty Ltd under which LMTD has been granted an option to earn a 70% legal and beneficial interest in the Tenements (from Gondwana’s 90% beneficial interest) in consideration for LMTD paying Gondwana $50,000 and sole funding $500,000 on exploration expenditure.

COMPETENT PERSON STATEMENT – EXPLORATION RESULTS

The information in this Report that relates to Exploration Results is based on information compiled by the Company by Mr Grant Donnes, a competent person who is a Member of the Australian Institute of Geoscientists.  Mr Donnes has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (“JORC Code”). Mr Donnes consents to the inclusion in this Report of the matters based on his information in the form and context in which it appears.